City Administrator Joe Hoffman presented details of the proposed 2019 budget/levy at the city council’s December 3 meeting. The presentation was an opportunity for the public to hear the details and to make comments on the proposed budget/levy, as required by state law. No one from the public attended this meeting.
The proposed levy includes a 5% increase over 2018, or an increase of $44,860. Hoffman said all of the increase and more will go into the Street Improvement Fund. The total 2019 proposed levy is $942,046.
Forty-nine percent of the city’s revenue will come from the tax levy, 26% from state aid, 11% from police/fire revenues, 5% from tourism/library/parks, and 9% from miscellaneous sources. The level of state aid has remained relatively flat since 2004 when it was 42% of the city’s budget. Hoffman said in order for the city to keep up with increases in expenses it has had to rely more on the property tax levy.
The proposed Street Fund for 2019 is about $151,000, which represents about a $60,000 increase. Additional monies are being put into the Street Fund in anticipation of future projects. Hoffman noted bond payments are gradually dropping off; the difference in bond payments due next year is also being captured and reallocated to the Street Fund.
At the council’s next meeting, December 17, the 2019 levy will be certified. Mayor Kurt Reicks noted the levy can not be increased, but could be decreased from approved preliminary numbers.
Other business in brief
• Council members met on November 9 to review and certify the election results. Reicks was reelected mayor (two-year term) and councilmen Charles Sparks and Robert Maust were also reelected (four-year terms).
• An annual request from the Southern Minnesota Initiative Foundation (SMIF) in the amount of $750 was approved. The amount has been the city’s contribution in each of the last two years.
Hoffman explained that city hall custodian Lynn Scheevel is no longer able to remove snow from city hall and fire hall sidewalks. It will be more cost effective to hire an outside service instead of paying overtime to city crews. It was recommended that a quote from Kinneberg Lawn Service LLC be accepted to do the snow removal at a rate of $35 per hour. The recommendation was approved with two stipulations: Nick Kinneberg provides proof of insurance and agrees to lock in the $35 per hour rate for the 2018-2019 snow season.
• Hoffman reviewed the Fair Housing Act, which is required to be observed to receive federal funds in the form of the Small Cities grant, which the city has received as part of the Small Cities Rehab Program. The city will not tolerate discriminating practices.
• An audit proposal was requested from Smith-Schafer and Associates for the 2018 and 2019 audits. The two-year extension agreement for Preston’s audit was approved with a 2.9% rate increase over last year ($17,000 for 2018 and $17,500 for 2019).